U.S. home sales rose in October as hurricane impact wanes

Christopher Rugaber, Associated Press

Published 11:07 pm, Friday, November 24, 2017

Photo: Alan Diaz, STF

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FILE - In this Dec. 6, 2016, file photo, a house is for sale in Coral Gables, Fla. On Tuesday, Nov. 21, 2017, the National Association of Realtors reports on sales of existing homes in October. (AP Photo/Alan Diaz, File) less

FILE - In this Dec. 6, 2016, file photo, a house is for sale in Coral Gables, Fla. On Tuesday, Nov. 21, 2017, the National Association of Realtors reports on sales of existing homes in October. (AP Photo/Alan ... more

Photo: Alan Diaz, STF

U.S. home sales rose in October as hurricane impact wanes

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WASHINGTON - Americans bought more homes last month, as sales snapped back in hurricane-hit Texas and Florida.

Yet the market is still suffering from a dwindling supply of available homes.

Sales rose 2 percent in October to a seasonally adjusted annual rate of 5.48 million, the National Association of Realtors said this past week. That's the fastest pace since June.

Still, sales have slipped 0.9 percent from a year ago. The number of available homes has fallen 10.4 percent from a year earlier to just 1.8 million. That's the lowest for any October since the real estate group began tracking the data in 1999.

The tight supply is pushing up prices and thwarting many would-be home buyers. The median home price jumped 5.5 percent in October from a year earlier. And homes were on the market for just 34 days, down from 41 a year ago.

The supply crunch is particularly acute among lower-priced homes. Builders are putting up more expensive houses to maximize profits.

"Selection is slim across the board, driving up prices, but even more so for those seeking less expensive and entry-level homes," said Svenja Gudell, chief economist at Zillow.